Jordan

The European Commission conducts regular analysis on macroeconomic and financial developments in Jordan and holds regular discussions with national authorities about economic policies. Moreover, Jordan benefits from an EU macrofinancial assistance programme.

Macro-financial assistance

The European Commission is providing Jordan with Macro-Financial Assistance to cope with economic shocks, including the impact on its economy from the conflict in Syria.

The Memorandum of Understanding for a first round of Macro-Financial Assistance, totalling EUR 180 million, was signed in March 2014 while the funds were fully disbursed in 2015. The intensification of the regional conflicts in 2015 and 2016 worsened further the economic situation in Jordan by affecting key sectors such as tourism and trade as well as investment inflows. At the same time, the inflow of Syrian refugees which continued in 2015 and 2016 created important financing needs while the balance of payments and fiscal position remained vulnerable. Following Jordan's request in March 2016, the European Commission proposed on 29 June 2016 an additional Macro-Financial Assistance (MFA-II) to Jordan of up to EUR 200 million in medium-term loans. The decision on the MFA-II was adopted by the European Parliament and the Council on 14 December 2016 while the Memorandum of Understanding was signed between EU and Jordan on 19 September 2017.

This assistance is part of a wider effort by the EU and other international donors, agreed at the London conference “Supporting Syria and the region” in February 2016, to help Jordan and other countries in the region mitigate the economic and social impact stemming from the regional conflicts and the presence of a large number of Syrian refugees in the country. This was confirmed during the Brussels Conference on “Supporting the Future of Syria” in April 2017, and the EU-Jordan Association Council in July 2017.

Since the beginning of the Syrian crisis in 2011, the EU has made available under different instruments more than EUR 1.6 billion to Jordan to help the country preserve economic stability, sustain political and economic reform and address its related humanitarian, development and security needs. In addition, the European Investment Bank has made available EUR 264 million in loans to Jordan.